The Mena tech-savvy younger population is going to boost e-commerce spending by 15 per cent in 2023, compared to the previous year, according to Tradeling, the largest B2B marketplace in the region.
The lockdown-induced trend of digital adoption across several industries is set to continue with a relatively young and technologically inclined population driving this projection, the company predicts.
CEO of Tradeling, Marius Ciavola, said: “E-commerce in the Middle East, and the region’s digital economy as a whole, are well-positioned to lead the world in the coming years with the UAE at the forefront.
“A strategic location, diverse economy, and innovative infrastructure have seen e-commerce popularity surge in the country in recent years and there appears to be no slowdown in sight. As a younger, tech-savvy demographic continues being nurtured through proactive efforts of the UAE’s wise leadership and a willingness to embrace new technologies and digital solutions, the industry’s future is promising.”
While increased worldwide digital adoption already became evident during the onset of the restrictions, Mena is forecast to maintain the trend, expecting to welcome approximately 100 million new digital service users over the next five years.
New digital users
This progress is predicted to see approximately 125 million new digital users by 2030 while boosting the region’s digital economy from its $100 billion value in 2022 to a whopping $500 billion by the end of this decade.
Intensive growth of Mena’s digital economy is poised to continue for the foreseeable future with hyper-growth expected in the GCC.
The UAE’s e-commerce sector is expected to be behind major contributions via its high internet penetration rate of more than 90 per cent, a growing smartphone user base and soaring demand for online shopping.
Favourable government policies are further bolstering the country’s e-commerce rise.
For example, the government has implemented several initiatives to promote entrepreneurship and innovation in the e-commerce space while also developing frameworks which protect consumers and businesses such as regulating payment systems and establishing dispute resolution mechanisms.
